Ripple CTO Injects Tesla Twist into SEC Debate, Ignites Crypto Community Discussion
  • Elon Musk has repeatedly said that Tesla’s price goes up after purchase due to significant software upgrades, but the opposite is happening, but the SEC doesn’t see that as a problem.
  • The SEC continues to pursue Ripple for securities fraud on seemingly lesser charges, and CTO David Schwartz wonders why the same energy isn’t focused on Musk.

Elon Musk has never been shy about speaking his mind, and that can sometimes resonate with his target audience, and sometimes it can be a bummer. Recently, Ripple’s CTO David Schwartz pointed out one of Musk’s bold statements and asked why Ripple’s pursuit of securities fraud has left the SEC doing nothing about it. He questioned whether the situation was getting serious.

Since 2019, Musk has predicted that Tesla cars will appreciate in value once purchased. This is unusual because vehicles are depreciating assets. But Musk says that constant software updates will make Tesla more valuable over time, a claim he reiterated as recently as last December during an earnings call. His boldest claim was that the “self-driving” software that powers Tesla is worth $100,000 by itself.

The opposite happened. As competition from traditional automakers intensifies, Tesla’s prices continue to drop for both new and used cars. CNN pointed When this came to light recently, Schwartz was quick to jump in and ask why the SEC has taken such a trigger-happy approach towards Ripple and crypto companies in general, but is taking no action against Musk. I wondered if it would wake him up.

The XRP community quickly weighed in, supporting Schwartz’s claims and condemning the SEC. XRP Cryptowolf, a popular influencer with over 320,000 followers, said:

The SEC knows that Ripple and Tesla do not sell securities. They just want to stick their noses where it doesn’t matter.

SEC vs Ripple Grind On

To be clear, Mr. Schwartz was not implying that Mr. Musk should be indicted for securities fraud. After all, Musk is a key ally of the crypto industry, as CNF recently reported. However, the Ripple CTO’s thinly veiled criticism points to the folly of the SEC’s approach of continuing to apply the law selectively. The SEC continues to crack down on companies it deems to have a better chance of winning, ignoring cases in which powerful companies have engaged in wrongdoing. Brazenly violates federal law.

Typically, half of the targets want to settle and resume normal operations, while the other half don’t have the financial resources to fight the SEC in court for months or even years, as in the Ripple case. Normally, it is at the mercy of the SEC.

But Ripple has found a formidable opponent who won’t take the attack quietly. Ripple has stood tall with Gary Gensler’s agency, except in a few instances where courts have ruled in favor of regulators, such as when Ripple was ordered to submit financial documents related to XRP sales. I’ve been mopping the floor.

Meanwhile, XRP is trading at $0.6246, up 10.81% over the past week.

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